Double entry accounting revision

According to the Debit - Credit rules, any increases to the Cash at Bank account will be recorded on the _________ side of the ledger account.

• left

• right

• middle

The trial balance is prepared before the ledger accounts are completed.

• False

• True

The transaction: Borrowed $20 000 from Sunbank will be recorded in the General Journal as:

• Cash at bank (Dr) $20 000; Loan repayment (Cr) $20 000

• Cash at bank (Cr) $20 000; Loan (Dr) $20 000

• Cash at bank (Dr) $20 000; Loan (Cr) $20 000

• Cash at bank (Dr) $20 000; Capital (Cr) $20 000

The general journal entries:

Cash at bank Cr $10 000

Accounts payable Dr $10 000 represent the following transaction:

• Credit purchase of $10 000

• Cash payment of $10 000 to accounts payable

• Cash receipt of $10 000 from accounts payable.

• Cash purchase of $10 000

Expenses decrease on the _______ side of the ledger accounts.

• left (credit)

• left (debit)

• right (debit)

• right (credit)

The transaction: Credit sale of $1 500 plus GST, cost price $500 will be recorded on the General Journal as:

• Accounts Receivable (Dr) $1 650; GST Clearing (Cr) $150; Sales revenue (Cr) $1 500; Cost of sales (Dr) $500; Inventory (Cr) $500

• Cash at bank (Dr) $1 650; GST Clearing (Cr) $150; Sales revenue (Cr) $1 500; Cost of sales (Dr) $500; Inventory (Cr) $500

• Accounts Payable (Cr) $1 650; GST Clearing (Dr) $150; Sales revenue (Cr) $1 500; Cost of sales (Dr) $500; Inventory (Cr) $500

If the General Journal entries are: Accounts Payable (Cr) $1 320; GST Clearing (Dr) $120 and Inventory (Dr) $1 200, the following entry will be posted on the Accounts Payable ledger account:

• Inventory/GST Clearing $1 320 (on the Dr side)

• Inventory/GST Clearing $1 320 (on the Cr side)

• Inventory $1 200 (on the Cr side)

• Inventory $1 200 (on the Dr side)

The two-fold effect of the following transaction is:

Owner withdrew $650 in cash.

• Cash at bank decreases by $650; Net profit decreases by $650.

• Cash at bank decreases by $650; Loan increases by $650.

• Cash at bank decreases by $650; Owner's equity decreases by $650.

• Inventory decreases by $650; Owner's equity decreases by $650.

If the business records an opening balance on the Cr side of the Cash at Bank ledger account, the business has a _________ balance in their bank account.

• positive

• negative

• zero

Any increases in drawings will be recorded on the _________ side of its ledger account.

• left (Dr)

• right (Cr)